Labor productivity over the past 25 years has been a success story for some, a tale of stagnation for others. Investments and digital transformation can boost productivity for all economies. On this episode of The McKinsey Podcast, McKinsey senior partners Chris Bradley and Olivia White join editorial director Roberta Fusaro to discuss how best to measure productivity, what’s behind curbed productivity numbers, and what can be done to ramp up productivity rates again.

In our second segment, McKinsey senior partner Tania Holt explores the challenge that Europe faces in filling many open skilled labor jobs. The answer, says Holt, is hiring ethnic-minority employees.